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Electronic Resource Management

Electronic Resource Management. A Multi-Period Capital Budgeting Approach SNRG 2008 Tim McGeary, Senior Systems Specialist Lehigh University. Introduction. Who I am: Senior Systems Specialist at Lehigh University Bachelor of Arts in 1999 studied music from Lehigh University

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Electronic Resource Management

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  1. Electronic Resource Management A Multi-Period Capital Budgeting Approach SNRG 2008 Tim McGeary, Senior Systems Specialist Lehigh University

  2. Introduction • Who I am: • Senior Systems Specialist at Lehigh University • Bachelor of Arts in 1999 studied music from Lehigh University • Master of Science in Information and Systems Engineering in 2006 from Lehigh University • What we are talking about: • McGeary, Timothy M. and Hartman, Joseph C. (2006) Electronic Resource Management: A Multi-Period Capital Budgeting Approach. The Engineering Economist 51 (4) 325-346

  3. Agenda • Why is ERM so important? • Keeping track of values • The Cycle of Supply and Demand • Capital Budgeting • What is a knapsack? • Competition of investments • Putting it all together • The power of math • Sample of journals • Maximizing the objective

  4. This is why is ERM so important Lehigh budget increases compared to Journal increases

  5. Purpose of Electronic Resource Mgmt • Determine and track the value of a resource • Usage statistics • Renew the best, cancel the worst • Based on more than usage vs. cost • Support research ventures and new academic programs • Little or no objective data available • Add most requested (e.g. ILL) resources • Are copyright fees exceeding annual journal costs?

  6. Keeping track of values • Usage Statistics • Non-financial returns in usage statistics • Important to track and analyze • Objective data • Hope for usage statistic reporting consistency and ease • COUNTER, SUSHI • Costs of E-Resources • Financial figures • Packages, restrictions, and contracts

  7. The Cycle of Supply and Demand • FACT: 70% of articles and citations in U.S. natural science and engineering journals are produced by university researchers. • “Will the university become the primary publisher rather than have as its traditional role ‘generating knowledge, giving it away to the commercial publisher, and then buying it back for our scholars at increasingly prohibitive prices’? If the entire information distribution system changes, it will certainly have an immediate financial impact of libraries.” • There is a dual supply and demand of research and libraries: • The library as a supplier is unable to meet the demand of research • The supply of research is greater than the demand of the library based on its relatively shrinking budgets. Research – 200% Library Resources – 50%

  8. Capital Budgeting • A mathematical method used to maximize either the Net Present Value or Rate of Return of possible investments • Restricted by a budget and constrained by other factors • Decision made about competing investments or projects by calculating the best possible return of those investments. • Commonly referred to as a knapsack problem

  9. Competition of investments @ Lehigh • 23-25% of the entire Library & Technology Services (LTS) budget is the Journal budget. • We need to prove the worth of this significant investment • 68%-80% of the Library materials budget is the Journal budget. • Library materials budget includes consortium fees, ILL/copyright fees, binding, continuation costs, and databases. • Majority of LTS budget is now life-cycled • PC replacement - Staff and Public sites • Networking hubs • Banner, Sirsi, and other mission-critical servers • Portal, classroom technology, and campus phone system

  10. What is a knapsack? ABA Journal The Engineering Economist Composite Structures Cognitive Psychology Politics & Society Materials Letters Water Research Budget-sized knapsack

  11. The Math of a Knapsack where ujn = present usage value of journal j at time n xjn = journal selection variable of journal j at time n ajn = annual cost of journal j at time n bn = budget limit on supplied funds at time n J = set of journals N = set of time periods

  12. Constraints – it’s not quite that simple • Continuity • We can’t add a journal one year, remove it the next, and add it again the following year. • Packages and Deals • How does canceling one journal impact the price other journals? • Is it an apple or an orange? • Are usage statistics for a social science journal equal to the same type of statistic for an engineering journal?

  13. What is a knapsack with packages? ABA Journal The Engineering Economist Composite Structures Cognitive Psychology Politics & Society Materials Letters Water Research Budget-sized knapsack

  14. Adding more to the formula • The next step is to maximize the returns (usage statistics) of our investments (journal costs) and handle the continuity problem at the same time. • Weighting the returns: • For each successive year the model goes through the returns, a weight is multiplied to the difference of that year’s usage and the previous year’s usage. • The result is that resources with gains in usage are promoted and journals with declines are usage are demoted.

  15. The Math of the Constrained Knapsack where ujn = present usage value of journal j at time n xjn = journal selection variable of journal j at time n ajn = annual cost of journal j at time n bn = budget limit on supplied funds at time nzn = the discount rate as the average cost increase from time n-1 to time n J = set of journals N = set of time periods

  16. The Data Sample • 52 journals selected • As many disciplines and publishers as possible, based on the availability of usage statistics • COUNTER-compliant heavy • Chosen from “default lists” in each discipline from the MyLibrary@Lehigh e-resources portal. • This ensures that sample includes journals expected to be used • Control sample: 2 items slated to be cancelled and 2 items slated to be saved from cancellation Percentages of journals reporting usage statistics.

  17. The Power of Math - Dual Results • The power of the mathematical programming is that it produces dual results: • Primal result • maximized list of journals based on usage • Dual result • shows the priority in which journals are selected • What weight is appropriate? • 0% produces a straight cost/use result • As the weight increases, the rate of growth or decline in usage from year-to-year changes the priority of that journal

  18. Weighted example • Statistical Science

  19. Putting it all together • It appears that the most applicable weight value is the percentage increase of the budget • The results are promising that an objective solution can be produced from this model • Next steps required: • Add Impact factors to the constraints • Normalized impact factors should allow “apples” and “oranges” to be compared more equally, not only across colleges, but disciplines within the same colleges • Develop a system to include our entire collection of current resources • Produce annual reports of maximized budget given new journals to add • from ILL requests • new academic / research program requests

  20. Two years later… We now have 4 years of data and can begin to look at trends and analyze our results… For example, here is a graph of the duality results for all 50 journals in the latest sample…

  21. Let’s break that up a bit… Top 10

  22. Second 10…

  23. Third 10…

  24. References: • Digital Library Federation, http://www.diglib.org/Electronic Resource Management Initiative, http://www.diglib.org/pubs/dlfermi0408/ • Franklin, Brinley (2005) Managing the electronic collection with cost per use data. IFLA Journal 31 (3) 241-248 • Hayes, James W. (1984) Discount rate in linear programming formulations of the capital budgeting problem. The Engineering Economist 29(2) 113-126 • Hayes, Robert M. (1992) Measurement of use and resulting access allocation decisions. Library & Information Science Research 14(4) 361-377 • Henderson, Albert (1999) Information science and information policy: the use of constant dollars and other indicators to manage research investments. Journal of the American Society for Information Science, 50 (4) 366-379 • Leonard, Barbara G. (1994) The metamorphosis of the information resources budget. Library Trends, 42(3), 490-498 • Kleinmuntz , Don N., Catherine E. Kleinmuntz. (2001) Multiobjective Capital Budgeting in Not-For-Profit Hospitals and Healthcare Systems. Working paper (12/01), University of Illinois at Urbana-Champaign, Champaign, IL.  • Meyer, Richard W. (1997) Monopoly power and electronic journals. Library Quarterly 67(4) 325-349 • Odlyzko, A.M. (1999) Competition and Cooperation: Libraries and Publishers in the Transition to Electronic Scholarly Journals. Journal of Scholarly Publishing 30(4), 163-185 • Park, Chan S. and Sharp-Bette, Gunter P. (1990) Advanced Engineering Economics. New York, NY: John Wiley & Sons, Inc. • Prahba, Chandra and Ogden, John E. (1994) Recent trends in academic library materials expenditures. Library Trends 42(3) 499-512 • Project COUNTER, http://www.projectcounter.org/ • Tenopir, Carol. (2004) E-resources in tough times. Library Journal 129(10), 42 • Unger, V.E. (1974) Duality results for discrete capital budgeting models. The Engineering Economist 19 (4) 237-251 • Van Orsdel, Lee, C. and Born, Kathleen (2005) Choosing sides. Library Journal 130 (7) 43-49 • Van Orsdel, Lee, C. and Born, Kathleen (2006) Journals in the Time of Google, 131 (7) 39-44

  25. Thank you! • Tim McGeary Lehigh University Senior Systems Specialist tim.mcgeary@lehigh.edu Google Talk: timmcgeary@gmail.com Yahoo IM: timmcgeary 610-758-4998 • McGeary, Timothy M. and Hartman, Joseph C. (2006) Electronic Resource Management: A Multi-Period Capital Budgeting Approach. The Engineering Economist 51 (4) 325-346

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